Top Rocket Stocks for Week of Feb. 4

Updated from 6:12 a.m. EST

Stocks go through all sorts of growing pains all the time: There are missed earnings, misunderstood press releases, downbeat management meetings and negative analyst reports with which to contend. But sometimes the stocks that drop the most snap back the hardest.

Each week at Stockpickr.com, we search for those stocks that are underappreciated by Wall Street, with the thought that they can be ridden higher on a snapback move.

As readers know, I like to look for stocks that have potential catalysts ahead of them. The catalysts I look for vary from week to week, but typically they might include earnings, irrational selloffs, regulatory decisions, misinterpretation of company-specific news and other market-independent events that could push a stock higher.

Before we look at this week's Rocket Stocks portfolio, however, let's review how last week's picks fared.

• Tractor Supply(TSCO Quote): Up 20% on the week after the retailer reported better-than-expected earnings and a 15% sales jump.
• Zimmer Holdings(ZMH Quote): Up 18.8% on the week after handily beating estimates. Revenue rose 15% year over year, and EPS came in at $1.12 a share. Analysts were looking for EPS of $1.04.
• YRC Worldwide(YRCW Quote): Up more than 20% and ending the week up 13.8% even after posting a drop in quarterly sales.
• Cemex(CX Quote): Up 12% on the week. The Mexico-based company reported a 43% jump in fourth-quarter net profit, showing that global growth is still intact.
• Burlington Northern(BNI Quote): Up 7% on the week after reporting solid earnings. BNI was a play off of CSX's(CSX Quote) earnings, and it worked out.
• McDonald's(MCD Quote): Up 6% on the week in spite of mixed news. The fast food chain posted an earnings beat but also a slowdown in December same-store sales.
• Verizon(VZ Quote): Up 3.9% on the week.
• EMC(EMC Quote): Down 3% on the week despite beating Wall Street earnings estimates; the issue here was the spinoff of VMware's(VMW Quote) earnings, which were much weaker than analysts anticipated.
• optionsXpress(OXPS Quote): Up nearly 6% at one point but ending the week down 3.4%. The company reported a 44% rise in fourth-quarter profits. EPS came in at 44 cents. Analysts were looking for 43 cents.
• Merck(MRK Quote): Up as much as 3.7% but ending the week down 3.7% after the drugmaker reported fourth-quarter profits hit hard by charges.

Now let's look at some of the picks from this week's Rocket Stock portfolio.

First up this week is Manitowoc(MTW Quote), a maker of cranes and other basic construction vehicles worldwide. I have highlighted Manitowoc as a Rocket Stocks pick before, and with good cause.

The stock recently has moved from a 52-week high of $51.49 (set Dec. 26) to about $39 currently. Shares of Manitowoc are now at a level from which they can climb if the company beats earnings estimates when it reports after Monday's market close.

Shares have been on a horrible side, in part because of an inaccurate assumption that global growth has been slowing. Manitowoc recently raised its 2008 guidance, saying that sales at its crane division should grow by more than 20% next year -- and that is after seeing 100% year-over-year growth in its backlog. Last week, internationally based stocks suggested that international growth is still strong.

Manitowoc is a potential earnings play and is worth a close look.